Date: 5/5/2017
Author: MarketWatch

10-Year Treasury Note Yield Posts Largest Weekly Gain in Almost 2 Months


Sharon Stark's thoughts on investors waiting on the sidelines with cash.

 

Bond traders focus on the jobs report for signs of economic vitality and inflation. A strong payrolls and wage growth can stoke inflation expectations, which, in turn, can erode the value of bonds’ fixed payments. But traders took the opportunity to “buy on the dip”, or when yields were higher, in anticipation of the selloff, traders said.

 

“There have been a fair number of investors waiting on the sidelines to buy bonds at higher yields. They didn’t really give yields much of a time to go up. There are a lot of investors in cash and cash-type securities, and as yields climb you’ll see that cash put to work,” said Sharon Stark, head of fixed-income strategies for Incapital.

 

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